Correlation Between FIREWEED METALS and Intel
Can any of the company-specific risk be diversified away by investing in both FIREWEED METALS and Intel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FIREWEED METALS and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIREWEED METALS P and Intel, you can compare the effects of market volatilities on FIREWEED METALS and Intel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in FIREWEED METALS with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIREWEED METALS and Intel.
Diversification Opportunities for FIREWEED METALS and Intel
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FIREWEED and Intel is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FIREWEED METALS P and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and FIREWEED METALS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FIREWEED METALS P are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of FIREWEED METALS i.e., FIREWEED METALS and Intel go up and down completely randomly.
Pair Corralation between FIREWEED METALS and Intel
Assuming the 90 days horizon FIREWEED METALS is expected to generate 24.36 times less return on investment than Intel. But when comparing it to its historical volatility, FIREWEED METALS P is 1.15 times less risky than Intel. It trades about 0.01 of its potential returns per unit of risk. Intel is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,941 in Intel on October 23, 2024 and sell it today you would earn a total of 167.00 from holding Intel or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIREWEED METALS P vs. Intel
Performance |
| Timeline |
| FIREWEED METALS P |
| Intel |
FIREWEED METALS and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIREWEED METALS and Intel
The main advantage of trading using opposite FIREWEED METALS and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIREWEED METALS position performs unexpectedly, Intel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Intel will offset losses from the drop in Intel's long position.| FIREWEED METALS vs. PARKEN Sport Entertainment | FIREWEED METALS vs. GigaMedia | FIREWEED METALS vs. CLEAN ENERGY FUELS | FIREWEED METALS vs. Grupo Media Capital |
| Intel vs. X FAB Silicon Foundries | Intel vs. X FAB Silicon Foundries | Intel vs. Vulcan Materials | Intel vs. SANOK RUBBER ZY |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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